Professor Christian Twigg-Flesner, together with Professors Teresa Rodríguez de las Heras Ballell (Carlos III, Madrid), Christoph Busch (Osnabrück), Marie Jull Sørensen (Aarhus) and Dariusz Szostek (Wroclaw), was appointed as co-reporter for a European Law Institute (ELI) project to draft Guiding Principles and Model Rules on Algorithmic ContractsLink opens in a new window at the meeting of ELI’s Council on 24/25 February 2022.

The team will focus on the use of Algorithmic Decision-Making (ADM), especially Artificial Intelligence system utilising machine learning, in all the stages of the contract life-cycle. ADM is used increasingly for automated contracting generally, and AI advances facilitate forms of autonomous contracting.

The project focuses on four aspects, in particular. First, it will explore how current contract laws can be applied to algorithmic contracting, as well as identify essential changes that need to be made as a priority. Secondly, it will re-evaluate contract law from the perspective of algorithmic/autonomous contracting as the new paradigm, in order to develop a new set of rules tailored for the novel features of these contracting method. Instead of merely gradually developing existing rules, this aspect is likely to entail a more extensive recalibration of existing rules, the removal of rules which do not appear to suit autonomous contracting, and the development of entirely new rules. A third aspect is to ensure that such a more radical reworking of contract law integrates a desire for ensuring human centricity, e.g. by developing suitable design duties for the technology deployed in autonomous/algorithmic contracts. Finally, the wider regulatory context of AI regulation needs to be fully taken into account.

The project will be divided into two phases. In the first phase, the team will analyse the readiness of current EU consumer law for algorithmic contracting. The second, larger, phase, will focus on identifying the necessary legal steps required to facilitate autonomous contracting in B2B, B2C, P2P and M2M transactions. The duration of the project is two-and-a-half years from March 2022. An interim report on the first phase is due to be published in spring 2023, and the final report setting out the Guiding Principles and Model Rules is scheduled for completion in the autumn of 2024.

The project is financially supported by the European Law Institute. The team of co-reporters will work with a project team, an advisory panel, and institutional observers from both regional and international organisations.